China Calls for Restoration of Global Semiconductor Supply Chain

In response to questions regarding Nexperia's operations, a spokesperson from the Ministry of Commerce addressed concerns about semiconductor shortages affecting automakers. Reports indicate that Nexperia's Dongguan plant currently has low wafer inventory levels, leading to chip shortages for both domestic and foreign automakers in China.

The spokesperson stated that the Chinese government, committed to maintaining global semiconductor supply chain stability, has implemented practical measures. These include exemptions for compliant, civilian-use chip exports to facilitate smooth supply chain operations. Authorities are also urging companies to resolve internal disputes through negotiations.

It was noted that Wingtech Technology Co.,Ltd. (闻泰科技) and Nexperia Netherlands held initial discussions last week. Both parties clarified their respective concerns and agreed to maintain communication. China calls on relevant companies to negotiate control and supply chain restoration issues to effectively revive the global semiconductor supply chain.

The spokesperson emphasized that the root of Nexperia's issues lies in the Dutch government's improper administrative interference in corporate operations. Citing a Chinese proverb, "It takes the one who tied the knot to untie it," the spokesperson urged the Dutch government to revoke its administrative order promptly. This would facilitate the withdrawal of lawsuits by Nexperia's former executives and create favorable conditions for negotiations, ensuring timely chip supply for automakers in China and globally. The Dutch government should fulfill its responsibility in restoring the security and stability of the semiconductor supply chain.